Measure allows local law enforcement in Florida access to fraudulant returns filed in the victim's name.

Apr. 25, 2012

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Thousands of Floridians filing IRS tax returns this year had an unpleasant surprise. A thief had already filed their taxes for them, making off with a huge refund and leaving the taxpayers to try to retrieve their identities and money from the IRS.

Local and state law enforcement, who tried to investigate and pursue these cases of identity theft, were thwarted by federal privacy laws that prohibited the IRS from sharing information on tax returns – even fake returns filed by identity thieves.

On Wednesday, the IRS launched a pilot program in Florida that will allow law enforcement access to fraudulent returns if the victim of the identity theft signs an IRS disclosure form allowing the agency to provide law enforcement officials with any tax returns filed in the victim’s name.

The News-Press first reported about such cases earlier this month. Ken Burt, of Cape Coral, is one of more than 460,000 taxpayers who were victims of tax return identity theft. Burt had wondered why the IRS didn’t use the information from the fraudulent tax return to track down the thief who stole his identity. The only tidbit he learned about the theft was that the refund went to someone in West Lake, a small town in northern Florida.

Burt said he’d allow the IRS to give any tax returns under his name to law enforcement, even if his legitimate tax return information might be revealed in the process.

“The only thing (law enforcement) would get is my Social Security number. And as far as how much I made and what I got back, who cares,” Burt asked. “I’m already a victim of identity theft. What do I have to worry about?”

Law enforcement officers who have worked these cases were pleased by news of the pilot program.

“It will definitely help law enforcement ID victims faster,” said Lt. Chad Parker of the Collier County Sheriff’s Office. “Right now the IRS can’t even confirm or deny if they’re working on an investigation of income tax fraud.”

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Parker said the disclosure form will now become part of the standard package the sheriff’s office submits to the IRS when it reports cases of tax fraud identity theft.

As an example of the potential benefits, Parker cited the recent case of Debbie Jean Cooper, a 53-year-old Miami Gardens woman, arrested in Collier County and charged with eight counts of identity theft.

Cooper, Parker said, had 600 names in her possession when she was stopped for speeding on Interstate 75.

The sheriff’s office had to enter the names into a database and circulate it throughout the state requesting other law enforcement agencies compare the list to their reports of victims of identity theft/tax fraud. Now Parker said, he can send the list to the IRS and it can identify which taxpayers had reported being identity theft victims.

Not only will the program help in identify victims, it will help prosecute criminals, said Officer Rocky Festa of the North Miami Police Department, because now they will have concrete evidence of a crime.

Festa said his office will start using the new disclosure form on a half-dozen cases they are working. “Hopefully this will be a stepping stone to prosecute these cases,” he said.

Fort Myers resident Marlene BeVier’s identity was used to get a fraudulent refund that Festa uncovered while working a case in North Miami.

As BeVier lamented the proliferation of cases, saying that even children had now become victims, she said she wouldn’t have any problem giving her approval to release her tax information.

“Anything that can help stop it,” BeVier said.

Although pleased with the “first step,” in addressing the problem of identity theft tax fraud, U.S. Rep. Richard Nugent, R-Spring Hill, was tempered in his enthusiasm, calling for more and quicker action by the IRS. He is part of a House oversight committee about the need for the IRS to improve its systems to thwart the growing problem of identity theft and the payment of criminals with U.S. Treasury funds.

Nugent said the pilot program is voluntary because it is not part of a federal statute. And although Florida is plagued by the problem of identity theft, it’s not the only area of the country with a problem.

Nugent said the program also does nothing to address federal prosecution and facilitates prosecution in state court.

“I would suggest the better venue is federal court, since it’s stealing money from the U.S. Treasury,” Nugent said. And if the person is convicted, federal penalties are greater, he said.

U.S. Sen. Bill Nelson, D-Florida, acknowledged there is more to be done and said he is working on a law addressing the issues that have led to an explosion in this type of crime. But until the law is passed and implemented, this allows the IRS to get around privacy provisions that stood in the way of getting justice, Nelson said.

“Once you get the aggrieved taxpayer’s approval,” Nelson said, the IRS, “can share the private tax return with law enforcement so law enforcement can identify who the thief is.”